Yesterday, Adobe announced that they are purchasing Magento, the leading e-commerce platform, for $1.68 billion. This deal will fill in a missing puzzle piece for Adobe by adding an e-commerce platform that will work in both the B2B and B2C markets. Adobe is using Magento to upgrade the Adobe Experience Cloud and offer a more powerful tool for customer experience. This purchase will also help Adobe to remain competitive with Salesforce, a company that provides its own sales and marketing services.
Brent Leary, owner of CRM Essentials said that the Magento purchase will “fill an obvious hole in Adobe’s Experience Cloud” when it comes to the areas of marketing and CRM. He said, “Now they have an offering that allows them to close the loop with consumers, who are able to finalize a digital transaction that started online with digital marketing tools Adobe already offered.”
There is concern, however, that this might not be the best deal for Adobe, since Magento has always targeted small and medium-sized businesses, whereas Adobe has targeted large enterprises. However, this purchase could create a much better experience for Adobe’s customers. As Cindy Zhou, VP and principal analyst at Constellation says, “Magento has become the commerce platform of choice for many big and mid-size companies including Coca Cola. There is great synergy for Adobe to complete the customer journey.” It will be interesting to see how Adobe does just this.
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